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Yuki Ito

Can I collect Washington ESD unemployment if I receive a pension?

I'm 62 and was laid off from my job at a manufacturing plant after 15 years. I have a small pension from a previous job that pays me about $800 a month. I'm wondering if I can still file for unemployment benefits with Washington ESD or if the pension disqualifies me? I've been searching for work but haven't found anything yet. The pension barely covers my mortgage so I really need the unemployment to make ends meet.

You can still collect unemployment even with a pension in Washington state. The pension won't automatically disqualify you, but Washington ESD will reduce your weekly benefit amount by the portion of the pension that's attributable to employer contributions. So if your employer contributed to that pension, they'll deduct a percentage from your UI benefits.

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Yuki Ito

Author

Thanks! How do I figure out what portion was employer contributions? The pension is from like 20 years ago and I don't have all the paperwork anymore.

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You'll need to contact your former pension administrator to get a breakdown. Washington ESD requires documentation showing employer vs employee contributions. Without it, they might assume the full amount is employer-funded.

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I went through this exact situation last year. Washington ESD will ask you to report the pension on your weekly claims. They calculate the deduction based on what they call the 'base period' - basically they look at when you earned the pension credits vs when you're claiming UI benefits. It's confusing but they walk you through it.

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Yuki Ito

Author

Did it take a long time for them to figure out the deduction amount? I'm worried about delays in getting my benefits.

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Mine took about 3 weeks to sort out because I had to provide additional documentation. But once they had everything, the payments were backdated to when I first filed.

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This whole pension thing is such a hassle with Washington ESD. I've been trying to get through to someone for weeks to clarify my situation but their phone lines are always busy. Has anyone found a way to actually talk to a real person there?

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I actually found this service called Claimyr that helps you get through to Washington ESD agents. You can check it out at claimyr.com - they have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works. I used it last month when I was stuck in adjudication and finally got my questions answered.

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Wait, I'm confused. Does this apply to all pensions or just certain types? I have a 401k from my old job - is that considered a pension for Washington ESD purposes?

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A 401k withdrawal is different from a pension. Washington ESD looks at regular monthly pension payments, not one-time 401k distributions. If you're taking regular monthly distributions from your 401k, that might be treated similarly though.

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Ok that makes sense. I was worried I'd have to report my 401k balance or something.

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The Washington ESD pension rules are actually pretty fair compared to some other states. At least they don't completely cut off your benefits if you have any pension income. They just reduce it proportionally.

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Yeah but the paperwork is still a nightmare. I had to dig up employment records from 1995 to prove my employer contribution percentages.

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OP, make sure you report the pension income on your initial application. Don't wait until they ask about it later because that can cause overpayment issues. I learned that the hard way and had to deal with Washington ESD collections for months.

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Yuki Ito

Author

Oh no, that sounds awful. I'll definitely report it upfront. Better safe than sorry.

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This is good advice. Washington ESD takes unreported income seriously, even if it's just a small pension.

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Does anyone know if Social Security counts as a pension for this purpose? I'm thinking about taking early SS at 62 but don't want it to mess up my unemployment eligibility.

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Social Security is handled differently than private pensions. Washington ESD doesn't reduce UI benefits for Social Security payments because they're federally funded, not employer-funded.

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That's a relief! Thanks for clarifying that.

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I'm dealing with something similar but with a military pension. Anyone know if that's treated the same way by Washington ESD?

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Military pensions usually don't reduce your UI benefits in Washington because they're service-connected, not employer contributions in the traditional sense. But you should still report it to be safe.

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The whole system is so complicated. I wish Washington ESD would just have clearer guidelines posted online instead of making us guess about these things.

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Right? I spent hours on their website trying to find clear information about pension deductions and still wasn't sure.

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For what it's worth, I called Washington ESD about my pension situation and the agent was actually really helpful once I got through. She explained everything clearly and helped me calculate the deduction. Maybe try using that Claimyr service someone mentioned earlier if you're having trouble getting through.

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How long did it take you to get through to someone? I've been trying for days.

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I used Claimyr and got connected within about 20 minutes. Much better than spending all day redialing.

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Just want to add that if you're unsure about your pension documentation, it's better to provide too much information than too little when filing with Washington ESD. They can always ignore what they don't need.

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Yuki Ito

Author

Good point. I'll gather everything I can find about my old pension before I file.

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One thing to watch out for - if your pension amount changes (like gets a cost of living adjustment), you need to report that to Washington ESD right away. It could affect your benefit calculation.

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I didn't know that! Mine goes up a tiny bit each year. I better check if I need to update Washington ESD.

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OP, you should also make sure you're meeting the job search requirements even with the pension. Washington ESD still expects you to be actively looking for work regardless of other income sources.

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Yuki Ito

Author

Yes, I'm already registered with WorkSource and applying to jobs. Thanks for the reminder though.

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The math on pension deductions can be tricky. Washington ESD uses a formula based on your base period wages and the timing of when you earned the pension credits. If you're not comfortable calculating it yourself, definitely get help from an agent.

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This is why I ended up using Claimyr to talk to someone at Washington ESD. The calculation was too confusing to figure out on my own and I wanted to make sure I was reporting everything correctly.

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Just curious - does anyone know if the pension deduction applies to the waiting week too, or only to the weeks you actually receive benefits?

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The deduction applies to any week you would receive UI benefits, but since there's no payment during the waiting week anyway, it's not really relevant for that week.

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Bottom line for OP - yes you can collect unemployment with a pension, but expect some reduction in your weekly benefit amount. The good news is Washington ESD is usually pretty reasonable about working with you to figure out the right calculation.

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Yuki Ito

Author

Thanks everyone for all the helpful information! I feel much more confident about filing my claim now.

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I'm in a similar situation but with a teacher's retirement pension from California that I'm receiving while living in Washington now. Does anyone know if out-of-state pensions are treated the same way by Washington ESD? I'm worried they might not have the right information to calculate the employer contribution portion since it's from a different state system.

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